Raja Begum (55) of Langate succumbed to injuries at SKIMS Hospital here in the wee hours, a police official said.
He said four others injured in the incident were undergoing treatment at various hospitals.
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Protests erupted in Handwara town of Kupwara district, following allegations that a girl student, on her way home, was molested by soldiers posted in an army picket in the town, official sources said.
They said the protestors pelted stones at the army picket to which the security forces retailed by firing.
Two youth -- Iqbal Ahmad and Nayeem Bhat -- were killed in the firing, the sources said, adding a woman was also critically injured in the incident.
Army has expressed regret over the loss of life in the incident and initiated an inquiry.
"Army deeply regrets the unfortunate loss of life.The matter will be investigated and anybody found guilty, will be dealt as per the law," an army official said.
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